NEW PALTZ--The Town of New Paltz was slated to sign a letter of intent with Hardin Geothermal, LLC on Jan. 31 to bring geothermal heating and cooling to town buildings. "The prospect of bringing geothermal heating to New Paltz as a public utility is an exciting concept and is consistent with our community’s interest in reducing our carbon footprint in a way that is both innovative and affordable," says New Paltz Town Supervisor Toni Hokanson.
While not a legally binding contract, this agreement is a show of good faith between both parties to commence discussion on moving forward with a geothermal project. The letter of intent stipulates that the project will be owned by an as yet unformed company that will be named GeoUtilities-New Paltz, and which will be part of a the larger GeoUtilites, LLC based out of Indiana.
The Town of New Paltz is not intended to assume direct financial responsibility or liability for the project, according to the agreement. However, the town will be obligated to pay for each BTU produced, according to an already arranged price.
Revenue earned by the town will be earned via the markup charged to the town customer(s) over and above the wholesale price of geothermal BTUs paid by the town to [GeoUtilities]-New Paltz via the Monthly Usage Fee (as set forth in the [Geothermal Power Purchase Agreement, which governs the construction, installation, and operation of a GeoUtility within the town]).
Source: Town of New Paltz
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